Audit Queries N522m Aviation Ministry Arms Procurement

The Federal Ministry of Aviation and Aerospace Development paid N522.49 million for guns and ammunition that were allegedly not delivered, according to the Auditor-General for the Federation’s 2024 Annual Report on Non-Compliance and Internal Control Weaknesses in Ministries, Departments and Agencies.

The report said the ministry paid N270,020,066.80 in two transactions for the procurement of AK rifles, red-dot sights and AK ammunition to enhance security operations at the nation’s airports.

It said the payments were made on January 10 and May 23, 2023, but the ministry could not provide evidence of approval from the National Security Adviser for the procurement of the ammunition.

The report also said the company’s quotation was not attached to the payment documents, while required due process documents, including CAC, NSITF, ITF and FIRS documents, were missing. It added that there was no Store Receipt Voucher to show that the items had been received by the ministry.

The report quoted the ministry as saying that the firearms had been supplied to the armoury of the Nigeria Security and Civil Defence Corps headquarters in Abuja for safekeeping pending the completion of the Federal Airports Authority of Nigeria’s armoury.

However, the Auditor-General said there was no evidence or document to establish that the firearms were in the custody of the NSCDC headquarters.

It said the lapses could be attributed to weaknesses in the ministry’s internal control system and could expose government to the risk of diversion and loss of public funds.

In its response, the ministry said the procurement passed through all required processes and that the necessary approvals and documents were obtained, including award and acceptance letters, Bureau of Public Procurement documents, due process review reports, Federal Executive Council approval, contract agreement and security clearance from the Office of the National Security Adviser.

The ministry also said the relevant payment vouchers and supporting documents had been provided.

The Auditor-General, however, rejected the response as unsatisfactory and said the findings remained valid until the recommendations were implemented.

It recommended that the permanent secretary should account to the Public Accounts Committees of the National Assembly on the N270.02 million and recover and remit the money to the Treasury.

On the second procurement, the report said the ministry paid another N252,470,282.20 through two vouchers dated February 10 and May 23, 2023, for the procurement of sub-machine guns, pistols and ammunition for aviation security at the nation’s airports.

The ministry again maintained that all procurement procedures and approvals were duly followed and that the contract was properly executed.

It said a security clearance from the Office of the National Security Adviser and a letter forwarding the delivery note from FAAN’s Director of Finance and Accounts had been provided to support the transaction.

The Auditor-General, however, said the ministry’s response was unsatisfactory and maintained its findings.

The report also queried the payment of N163,918,943.69 to six contractors for the construction of control towers at six airports across the country.

It said five contractors received N30,947,309.22 each on June 1, 2023, while another contractor received N9,182,397.59.

According to the report, the contracts were awarded on May 24, 2018, at a total contract sum of N4.459 billion but remained incomplete, particularly the technical aspects, six years after the award.

It said agreements dated November 18, 2021, relating to five of the contracts were executed by proxy between the ministry and representatives of United Kingdom-based companies.

The Auditor-General said there was no evidence of work done for the amounts paid through the representative contractors and warned that executing the agreements by proxy could make the contractual clauses difficult to enforce and expose the government to financial loss in the event of default.

Responding, the ministry said it had no direct engagement or agreement with the foreign company, explaining that the agreement between the contractors established their commitment to the foreign firm.

The ministry also said completion of the projects was dependent on the prompt release of funds by the federal government, adding that it complied with procurement regulations and followed all stages of the procurement process in awarding the contracts.